Do you mean that it's magical protection against physical damage (compensation for the "defense" stat, since it doesn't level up well for mages), or regular magical protection against magical attacks?
Initially, I thought it was the first option. But now I'm starting to doubt it, and if my doubts are justified, then there's nothing new about this protection.
Like, you cast Implosion, and it only does 100 damage!
You started learning the first Disciples game a bit late. I finished it back in 2000!